Policy and Strategy in Global Competition Essay Example for Free

Policy and Strategy in Global Competition testify interchange suspense 11.1 Why is it of the essence(predicate) for an government activity to have findment between its outline and organisational structure? The relationship between an organizations strategy and structure be extremely classic because it directly impacts a bulletproofs performance (Rothaermel, 2013, p. 309). Also, as an organization grows, it should reevaluate the current strategy and structure to ensure that it remains the optimal choice for the organization (Rothaermel, 2013). The four types of organizational structures, listed in smart set of least to most complex according to Rothaermel (2013), ar (1) simple, (2) functional, (3) multidivisional, and (4) matrix. The simple structure is for small firms or organizations that are just starting out (Rothaermel, 2013). The decision-making structure is quite flat, as the founders tend to make all the important strategic decisions (Rothaermel, 2013, p. 309) . Growth will often cause the higher-ups to feel overwhelmed under this type of structure, requiring the organization to feign a different, more complex structure (Rothaermel, 2013).A functional structure groups employees into teams, earmarking for increased decision-making at pooh-pooh levels of the managerial chain (Rothaermel, 2013). The opportunity for specialization allows for the functional structure to be employed with each of the business-level strategies salute leadership, differentiation, or integration (Rothaermel, 2013). One of the hurdles to overcome would be the likely increase in difficulties which originate from departmentalization of the varying teams (Rothaermel, 2013). The best way to overcome such a hurdle is through cross-functional teams (Rothaermel, 2013).Whenever the organization seeks greater diversification, into varying product lines and service offerings, it will likely look into utilizing a multidivisional structure (Rothaermel, 2013). Under this st ructure, the organization is further compartmentalizedinto strategic business units (SBUs) which are governed by their own profit-and-loss (PL) responsibilities (Rothaermel, 2013). At this level, each of the SBUs is viewed as its own independent entity, engage its own profit-creating goals (Rothaermel, 2013). While organizations with a corporate-level strategy with a single or dominant business would be best served by a functional structure, organizations seeking related or unrelated diversification would be wise to utilize a multidivisional structure (Rothaermel, 2013).Lastly, the matrix structure is a combination of the functional and multidivisional structures (Rothaermel, 2013). It is most appropriate when an organization needs a structure which allows for some(prenominal) change and decentralized decision-making, and can be organized by geographic areas and product divisions (Rothaermel, 2013). While a worldwide strategy does not automatically lend to a matrix structure, a transnational strategy which has the requirements supra is better served through a matrix structure (Rothaermel, 2013). Discussion Question 11.3(a) What commonalities across the products would likely be enhanced by flexible cross-functional teams? control panel has product lines which include consumer products like guitar strings and vacuum filters, stemmas and cable assemblies, electronic and electrochemical materials, fabrics, fibers, filtration products, medical products, pharmaceutical processing, sealants, and venting products (Gore, 2015). Its product lines are used in industries ranging from aerospace and self-propelling to military and textiles (Gore, 2015).Gore utilizes cross-functional teams to help develop its some products in spite of appearance varying lines (Rothaermel, 2013). Cross-functional teams allow for individuals from differing functional areas within an organization to temporarily come together and work on a particular project (Rothaermel, 2013). These tea ms would allow for the differing products, though developed for a particular function, to be developed for use in more than peerless of the organizations products (Rothaermel, 2013). As an example, the cables developed for aeronautics can likely be used in other electronic or automotive applications if developed by members from the appropriate cross-functional teams. Discussion Question 11.3(b) What would be your expectations of the type of norms found at W. L. Gore? Organizational norms define appropriate employee attitudes and behaviors (Rothaermel, 2013, p. 318).The norms which exist at Gore likely arise from founder imprinting,which means that Bill Gore, the founder of W. L. Gore Associates, has helped to establish and define the political partys culture (Rothaermel, 2013). The organizations four core values, stated succinctly, are (1) fairness, (2) freedom, (3) individual commitment, and (4) point of reference and collaboration (Rothaermel, 2013). These values, coupled with the open nature of the organizations structure, take in organizational norms which go on the free exchange of ideas and collaboration up and down the organizational ladder (Rothaermel, 2013). Employees, associates as they are called at Gore, likely show great respect to one another and to the customers for whom their products are developed (Rothaermel, 2013).Chapter 12Discussion Question 12.1 How can a firm lower the chances that key managers will pursue their own expedience at the expense of the stockholders? At the expense of the employees? Corporate governance tools are utilized to help align the interests of principals and agents, or organizations and employees (Rothaermel, 2013). A board of directors is one such tool which helps to prevent key managers to avoid pursuing their own self-interest at the expense of the stockholders (Rothaermel, 2013). A board of directors is independent, made up of both deep down and outside directors, and answers directly to the shareholders (Rothaermel, 2013). Another tool is executive compensation which links compensation to the performance of the club (Rothaermel, 2013). This means that the CEO would receive certain stock options in lieu of pay (Rothaermel, 2013).If the companys stocks are doing well, likely showing that the company is successfully operating, then the CEO receives greater value in the stock options (Rothaermel, 2013). The concept of the market as a corporate control has the potential to protect both stockholders and employees interests through a key managers fear of being replaced if the company performs poorly (Rothaermel, 2013). If a company is not performing well, then the stock prices will begin to plummet, increasing the opportunity for an entity to barter for enough shares to exert significant control over the company (Rothaermel, 2013).Such control would likely result in the removal of current management, and possibly the dismantling of the organization (Rothaermel, 2013). This clearly injur es the management, employees, and shareholders of the failing organization. Assuch, managers are motivated by the external market to perform well, thereby protecting the interests of stockholders and employees alike (Rothaermel, 2013). Discussion Question 12.2 Why are these two roles typically separated? Is it a positive development for so many firms to have a combined CEO and board chair?The two roles of management and ownership are typically separated to ensure that the board of directors maintains its necessary independence (Rothaermel, 2013). Where a board of directors is The decline point in time differs from those above, as it introduces four strategic options for firms to pursue (1) exit, (2) harvest, (3) maintain, and (4) consolidate (Rothaermel, 2013). The exit strategy is precisely as it says it involves the firm choosing to leave the market to pursue other endeavors (Rothaermel, 2013).The harvest strategy means that the firm will noneffervescent sell the product or serv ice, but will reduce the level of investment in its sustainment and development (Rothaermel, 2013). The maintain strategy is also exactly what it sounds like the firm continues offering the product or service at the same level as it has been, despite the declining demand (Rothaermel, 2013). The consolidate strategy involves the buy of rivals in an effort to shrink the industry, which provides firms employing this strategy to reach near-monopolistic status (Rothaermel, 2013).ReferencesRothaermel, F. T. (2013). Strategic Management. New York McGraw-Hill/Irwin. Walmart. Our story. Retrieved on January 25, 2015, from http//corporate.walmart.com/our-story/